Alphabet Reports Record Revenue, Doubles AI Investments

WASHINGTON: (Web Desk) – Alphabet, Google’s parent company, reported record-breaking earnings on Wednesday, driven by surging revenue from AI-enhanced cloud computing services. The tech giant posted an 18 percent year-on-year increase in quarterly revenue, surpassing $400 billion in annual revenue for the first time since its founding in 1998 by Larry Page and Sergey Brin.

CEO Sundar Pichai said the company will nearly double its 2026 investments in AI and cloud infrastructure, with capital expenditures expected to reach $175 billion to $185 billion, reflecting high demand for AI-powered products that currently exceeds supply.

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Alphabet’s Gemini AI now boasts 750 million monthly users, up 100 million from the previous quarter. Revenue from cloud computing rose 48 percent to $17.7 billion, while YouTube advertising contributed $11.4 billion. Core search and advertising operations generated $82.3 billion, up from $72.5 billion a year earlier.

Despite strong growth, Alphabet’s experimental “Other Bets” division, including autonomous vehicle unit Waymo, posted a $3.6 billion loss on $370 million in revenue. Waymo recently raised $16 billion in funding, valuing the unit at $126 billion, as the company expands its self-driving rides service to over 400,000 weekly rides in six major U.S. metropolitan areas.

Pichai highlighted that Alphabet’s AI and cloud investments are fueling growth across all divisions, cementing the company’s position in the ongoing technology and AI arms race.